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(a) Except as provided in (b) of this section, state land may be designated as noncompetitive for coal leasing purposes if the commissioner determines that
(1) the land does not qualify for competitive leasing under 11 AAC 85.010; or
(2) the land was offered at a competitive sale and no acceptable bids were received.
(b) Land may not be designated as noncompetitive for coal leasing purposes if the commissioner determines that there exists an irreconcilable conflict with surface use, and that coal development is not the highest and best use of the land.
(c) Land opened for noncompetitive leasing before June 18, 1982 is closed for noncompetitive leasing until the land is reevaluated, and opened under 11 AAC 85.205.
(d) Land opened for noncompetitive leasing under (a) of this section is subject to a preferential right of first refusal by a lessee holding an overlying shallow natural gas lease issued under AS 38.05.177 .
History: Eff. 6/18/82, Register 82; am 9/10/98, Register 147
Authority: AS 38.05.020
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Last modified 7/05/2006